Lorenzo Stroe
Independent Analyst
- ADA is currently trading at $0.097 after a slight rejection from $0.10.
- Bulls have defended the $0.085 support level three days in a row and are ready to see ADA bouncing.
Cardano, like the rest of the market, had a significant crash on September 3. However, the digital asset was already weaker than the rest two weeks before. At the same time, it’s also true that Cardano’s bull rally was far more significant than Bitcoin and others with a 785% price increase.
ADA/USD 4-hour chart
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ADA price seems to have broken out of a parallel channel formed around September 6, and it’s now facing strong resistance at $0.098, where the 50-MA is currently established.
Additionally, the IOMAP chart shows that the majority of the resistance is indeed at $0.098, which means a breakout above this level would most likely push ADA close to $0.11 as there aren’t many other resistance levels nearby.
ADA/USD 1-hour chart
-637353467589805297.png)
Clearly, the 1-hour chart favors the bulls after ADA established a strong uptrend; however, the RSI is on the verge of overextension. Looking back, the past three times that the RSI was close to climbing above 70, ADA retraced back for at least a couple of hours before resuming its uptrend. It seems that Cardano might have a slight pullback before a breakout.
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